Slide 1: A Pure-Play Tanker Company
March 2022 A Pure - Play Tanker Company
Slide 2: Disclosure
Disclosure Matters discussed in this presentation may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. F
Slide 3: Agenda
Agenda Section 1: Company Overview Section 2: Financial Presentation 3
Slide 4: Company Profile
Company Profile Transitioned to pure tanker fleet, new management, simple corporate structure, new strategy implementation Nasdaq: PSHG Pure Tanker Company Publicly Listed since 2011 Since October 2020 Aframax Tankers $36.5 million LTV 35% Established Commercial Total Revenue in 2021 Target Net Loan
Slide 5: Experienced Senior Management
Experienced Senior Management Name / Title Biography Aliki Paliou Director Performance Shipping Inc. since February 2020 Chairperson of the Board Director, Vice-President and Treasurer of Unitized Ocean Transport Limited since January 2020 Previously Director and Treasurer of Alpha Sigma Shipp
Slide 6: Fleet & Employment Profile
Fleet & Employment Profile Mid-point age, high specifications & quality assets under spot and pool charters Target: another 5 tankers to be acquired in 12-24 months Size Special Survey Next Special Vessel Built Shipyard Type Status Employment (DWT) passed Survey Blue Moon Sumitomo, 2011 104,623 Afra
Slide 7: Focused Business Strategy
Focused Business Strategy Transparent company provides investors with low leverage variable dividend exposure to the tanker sector Growing sector presence - 2x fleet, 12-24 months High specifications & quality, reputable yards Fleet Composition Mid-point age profile acquisitions ≈ 12 years C
Slide 8: Technical & Commercial Management
Technical & Commercial Management Technical & Commercial Manager, Unitized Ocean Transport Limited (UOT) our Wholly-Owned Subsidiary Established efficient operations with low vessel operating expenses We fully fund all commercial and technical services provided by UOT Full-Service Platform Services
Slide 9: Agenda
Agenda Section 1: Company Overview Section 2: Financial Presentation 9
Slide 10: Summary Selected Financial & Other Data
Summary Selected Financial & Other Data The table below, illustrates our consolidated statements of operations and other data for the 4th quarter of 2021 and the full 2021 fiscal year Quarter / Year Q4 / 2021 YE 2021 Consolidated Statement of Operations (Expressed in millions of U.S. Dollars) Voyage
Slide 11: Debt Description
Debt Description Indebtedness exclusively comprising of efficient secured amortizing loan from relationship banks, with annual repayment and 2H 2024 maturity Vessel Debt Drawdown Debt Outstanding Annual Repayment Interest Rate Maturity ($m) (December 31, 2021) ($m) Blue Moon 16.5 12.1 1.77 L + 2.75%
Slide 12: Solid Balance Sheet
Solid Balance Sheet Solid balance sheet targeting leverage at incurrence < 35% net LTV Dec 31, 2020 Dec 31, 2021 (3) Actual Actual # of Tankers 5 5 Asset Value (1) $96.6m $116.5m AV / Ship $19.3m $23.3m Bank Debt (2) $58.1m $50.2m Cash $21.4m $9.6m Net Bank Debt $36.7m $40.6m LTV 60.1% 43.1% Net LTV
Slide 13: Equity Capital Markets
Equity Capital Markets Company has one class of Common Shares (Nasdaq: PSHG) trading modestly above cash, much below replacement cost and at very deep discount to net asset value Capital Markets Exchange Nasdaq Category Capital Market Ticker PSHG Outstanding Common Shares 2,438,477 Indicative Share
Slide 14: Preferred Stock
Preferred Stock In January 2022, the Company issued Series B Convertible Cumulative Perpetual Preferred Stock Series B Convertible Cumulative Perpetual Preferred Stock # Shares Outstanding 793,657 $ Value $19.8m Liquidation Preference $25.0 4.0% per annum of the $25.0 liquidation preference Dividend
Slide 15: Historical Rates vs Cash Break-even
Historical Rates vs Cash Break-even Further fleet expansion from 5 to 10 vessels over next 12 - 24 months expected to reduce daily cash break-even level above which we generate cashflow available for dividends Indicative Run Rate Cash Break-even Expected daily cash break-even rate per vessel (5 Afra
Slide 16: Through Cycle Value Generation
Through Cycle Value Generation We used the trailing 5-year historical Aframax spot charter rates (Q1/2017 – Q4/2021) and assumed all vessels operated in the spot market incurring the expenses in our indicative run rate break-even table, to determine quarterly cash flows that may have been available
Slide 17: Dividend Policy – Quarterly Calcs
Dividend Policy – Quarterly Calcs Quarter / Year Q4 / 2021 • The company expects to pay dividends only if (Expressed in millions of U.S. Dollars) during the preceding quarter both Quarterly Cash Flow and Quarter End Excess Cash are positive Voyage and Time Charter Revenues 9.647 Less, Voyage Expense
Slide 18: Attractive Equity Story
Attractive Equity Story Performance Shipping is a compelling play on a tanker vessel recovery 1 The only listed pure-play Aframax tanker company greatest operational trading flexibility among crude oil segments 2 Attractive initial fleet of 5 high-quality Aframaxes built at Tier-1 shipyards in Jap